Required Information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandine inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 25,939 75,956 $ 31,571 $31,584 99,398 8,440 243,517 $ 453,250 $111,731 87,767 162,500 91,252 $453,250 54,703 73,008 8,041 223,410 $ 390,733 $ 66,034 90,767 163,500 43,415 47,638 3,618 202,645 $ 320,900 $42,981 70,506 162,500 70,432 390,733 52,913 $ 328,900 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable